Govt slashes petrol price by Rs7.06, diesel by Rs3.71 per litre

Petrol price falls to Rs362 per litre and high-speed diesel to Rs387.81, with revised rates taking effect from November 5 following successive reductions.

Hamid Khan Wazir

ISLAMABAD: The government has announced another reduction in petroleum prices, cutting petrol by Rs 7.06 and high-speed diesel by Rs3.71 per litre, providing fresh relief to consumers amid volatile international oil markets and fluctuations in global crude prices.

Under the revised rates, petrol will be available at Rs362 per litre against the previous price of Rs369.06, while high-speed diesel (HSD) will cost Rs387.81 compared with Rs391.52 per litre. The new prices will take effect from November 5, 2026.

The revised ex-depot prices were announced by the Oil and Gas Regulatory Authority (OGRA) in a notification issued on Wednesday under the petroleum pricing mechanism approved by the federal government.

The latest reduction follows another cut announced on Tuesday, when the government lowered petrol prices by Rs5.45 per litre and diesel prices by Rs3.68.

With the two successive revisions, petrol has become cheaper by Rs12.51 per litre, while high-speed diesel has declined by Rs7.39 over the period.

The latest adjustment comes as international oil markets remain volatile, with investors closely monitoring developments surrounding the US-Israeli war against Iran and its potential implications for global energy supplies.

Global crude prices fell on Wednesday as traders assessed Washington's next move following the US midterm elections, in which Democrats secured control of both chambers of Congress from President Donald Trump's Republican Party.

Brent crude futures declined by $1.75, or 0.7 per cent, to $101.85 per barrel at 1034 GMT, after falling by as much as $2 earlier in the trading session.

US West Texas Intermediate (WTI) crude futures also dropped by $1.18, or 1.2 per cent, to $94.91 per barrel, reversing earlier gains of around $1.

The market movements reflected continued uncertainty over the geopolitical situation, particularly the possibility of developments that could affect oil production, transportation and supplies from the Middle East.

In the previous trading session, Brent crude had settled at its lowest level in nearly four weeks as investors weighed prospects for negotiations aimed at ending the wars in Ukraine and Iran.

The latest decline in international oil prices provided a favourable backdrop for the domestic price revision, although petroleum prices in Pakistan are also influenced by exchange-rate movements, government levies and the approved pricing mechanism.

Petrol and diesel prices have a direct bearing on household budgets, transportation costs and the overall cost of doing business.

While petrol is primarily used by private motorists, motorcycles and smaller vehicles, high-speed diesel is widely consumed by heavy transport, agricultural machinery, buses and industrial operations.

Consequently, reductions in diesel prices can help ease transportation and agricultural costs, potentially providing some relief from inflationary pressures.

The successive cuts are expected to offer consumers some respite, although their wider impact on the prices of essential commodities and transport fares will depend on whether the reductions are passed on through the supply chain.